Sui's native token SUI has surged more than 38% since the start of January 2026, sharply outperforming major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Over the past 24 hours alone, SUI jumped over 14%, reaching a high of $1.99—a level last seen in mid-November—and securing its position as the top daily gainer among the top 100 cryptocurrencies by market cap.
The rally appears to be fueled by a combination of factors. A key catalyst is speculation around potential privacy-preserving transaction capabilities for the Sui blockchain. A recent research paper co-authored by Mysten Labs, the core creator of Sui, outlined a formal framework for integrating privacy features into modern, account-based blockchains like Sui, Ethereum, and Solana. The paper explores using cryptographic primitives such as homomorphic encryption and zero-knowledge proofs to achieve various levels of confidentiality and anonymity, though it does not announce a specific product launch or timeline.
Analysts note the rally's resilience despite a significant token unlock on January 1st, which saw 43.69 million SUI tokens (worth approximately $65.10 million) enter circulation. Typically, such unlocks increase supply and exert downward pressure on price, but SUI continued to climb, suggesting strong market absorption.
On-chain fundamentals are also supporting the price action. Network activity has remained robust following the Mysticeti v2 upgrade, sustaining a transaction rate of 866 transactions per second. Daily trading volume for SUI spiked over 91% to $1.7 billion. The broader Sui ecosystem tokens have also seen notable gains.
Market observers are weighing further upside potential. Some analysts point to a triple-bottom technical formation and the reclaiming of the $1.75 level as bullish signals. Price targets from various traders range from $2.8 to $3.5 in the near term, with more ambitious projections suggesting SUI's market capitalization could approach $30 billion in a favorable altcoin market environment, a more than 300% increase from its current $7.3 billion valuation.
The surge in SUI is also seen within a broader 2025 trend where privacy-focused assets like Zcash and Monero outperformed, interpreted by some as a rotation towards "digital cash" assets emphasizing use and financial privacy over yield.
